Portugal’s budget deficit 3.9 pct of GDP in 2006

20 March 2007

Lisbon, Portugal, 20 March – Portugal’s budget deficit in 2006 was 3.9 percent of its Gross Domestic Product (GDP), which was below the 4.6 percent target set by the government, the Portuguese National Statistics Institute (INE) said Monday in Lisbon.

The government had announced that the deficit reported to the European Commission, in its national accounts, would be below expectations.

INE confirmed this by saying that the budget deficit fell by 2.1 percentage points to 3.9 percent of GDP.

The figures published by INE showed that the budget deficit totaled some 6 billion euros, or 2.9 million euros less than in the previous year.

The central administration deficit, which fell 26 percent or 2.3 billion euros, was responsible for most of the overall budget deficit improvement.

Local administration also improved its accounts by posting a surplus of 60.6 million euros in 2006 as compared to 436 million euros in 2005 and the surplus of the social security system improved by 29 million euros. (macauhub)